How to Become the Actuary Who Understands the Customer

An actuary in health who understands the customer has a career advantage. Pricing, reserving and forecasting remain essential, but they become more powerful when combined with a clear view of customer behaviour. Why do people buy health insurance? Why do they leave? Why do they stay in a plan that may not suit them anymore? Why do they not use benefits that were designed for them?

Recent consumer data shows how important these questions are. In Ireland, the Health Insurance Authority’s 2025 consumer survey was based on a nationally representative sample of 2,014 adults. Just under half of Irish adults, 46%, had private health insurance. At the same time, 61% agreed that health insurance is a necessity rather than a luxury, while 47% agreed that it is difficult to understand how health insurance works and the terminology used. Only 38% agreed that there is adequate information to compare plans on offer.

For actuaries, this is a strong signal. Customers do not experience insurance as a model. They experience it as a decision made with uncertainty: price, cover, terminology, claims process, waiting times, perceived fairness and trust. The actuary who can connect technical design with customer understanding becomes more useful to product teams, sales teams, executives and regulators.

Switching behaviour is another example. In the same Irish survey, only 43% of insured respondents considered switching provider to be easy, while 41% said they would consider switching if financial gains could be made. On average, respondents said they would need a 20% saving to switch to a comparable plan with another provider. This shows that customer behaviour is not only rational price optimisation. Friction, trust and perceived complexity matter.

The same pattern appears in other markets. Deloitte’s 2025 analysis of Swiss health insurance found that basic health insurance premiums are rising much faster than salaries, with a premium index of 140 compared with a nominal wage index of 110. The switching rate as of 1 January 2025 was 12%, compared with an average of 7.4% since 2017. Health insurers finance around 45% of Swiss healthcare costs, equal to about CHF 46 billion per year.

This is not just a Swiss or Irish issue. Swiss Re’s 2025 Asia Life & Health consumer survey, covering 12,101 respondents across 12 Asian markets, estimated the health protection gap at USD 258 billion in premium equivalent terms in 2024, up 21% since 2017. The report identifies perceived high price, lack of awareness or knowledge, and product relevance as key barriers to insurance uptake.
So how does an actuary become more customer-aware?

First, learn to read customer research alongside actuarial results. A lapse study, claims analysis or pricing review becomes stronger when viewed together with survey data, complaints, call-centre feedback or broker input. Second, avoid describing customers only as risk groups. Describe them as people making decisions with limited time, limited information and real financial constraints. Third, practice translating actuarial findings into customer language: “What does this mean for affordability, value, access and trust?”

For career development, customer understanding is especially useful because it moves actuaries closer to decision-making. It helps in product development, proposition design, health consulting, pricing strategy, customer analytics and management roles. It also makes actuarial work more visible: instead of presenting a technical adjustment, you can explain how the change affects real people and business outcomes.

The future health actuary should not only ask, “Is the premium adequate?” A better question is: “Will the customer understand, value and keep this cover when they need it most?”

Sources:

• Health Insurance Authority Ireland: A Review of Private Health Insurance in Ireland
• Deloitte Switzerland: Health insurance 2025: Between premium pressure and customer expectations
• Swiss Re Institute: Asia Life & Health consumer survey 2025